Revival of high street boosted by independent shops and Gen Z
THE revival of the high street could be underway – thanks to Gen Z and independent stores.
More of those aged 18 to 27 enjoy shopping at such retailers than any other age group (74%).
In contrast, 64% millennials feel the same, as do 61% of gen Xs, 57% of boomers, and 56% of those from the silent generation.
They’re also more inclined to avoid chain stores in favour of independent boutiques (40%) and even willing to pay extra for products sold by them (62%).
The items they are most likely to purchase from independent shops include clothing (29%), gifts (23%), home décor or homewares (17%).
Charlotte Broadbent, UK general manager at Faire, which commissioned the research, said: “The independent retailers we work with tell us that it’s often their youngest shoppers who most value the uniqueness and personal touch that independent stores offer over larger retailers.
“The fact they’re also prepared to pay extra for products sold by independent stores shows just how strongly they feel and how optimistic we should be for the growth of the independent retail sector in years to come.”
While the results suggest Gen Zs are most passionate about independent businesses, the proportion of money they spend with them isn’t quite the highest.
Millennials can claim that honour – with 32% of everything they buy coming from such retailers, in comparison to 29% for those aged 18 to 27.
Overall, 56% of everyone polled want to shop at independent stores more than they currently do – but claim the cost-of-living crisis is driving them to bigger chains.
However, 27% said they shop at independent retailers more frequently than they did two years ago.
The perceived benefits of shopping at independent shops include boosting the local economy (55%), the range of unique items on sale, and better customer service (both 45%).
It also emerged 82% of all adults polled believe their high street needs reviving, according to the research carried out through OnePoll.
More than six in 10 (63%) claim “a lot” or “a fair amount” of stores in this part of their local area have closed during the past 12 months.
To restore the high street to its former glory they’d like to see a greater variety of shops (57%), fewer empty ones (52%), new ones (47%), and more independent ones (40%).
Charlotte Broadbent from Faire added: “The number of people who want to see local high streets thriving again is huge.
“We believe that supporting independent businesses is key to making this happen because they offer so many unique products and experiences that bigger retailers can’t.”
Retailers opening stores on the high street
A number of major retailers are expanding their number of operational stores across the UK.
Aldi wants to open hundreds more stores as it looks to have a branch in all corners of England, Wales and Scotland.
Discounter Home Bargains also says it wants to open roughly 400 more branches as part of major expansion plans.
The new owners of White Stuff want to continue its drive to open more stores across the UK too.
Add to that some new names including as Oysho, Bath and Body Works and Miniso.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
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